‘$500 Billion In Three Weeks’—Tesla Billionaire Elon Musk Issues ‘Crazy’ Fed ‘Bankruptcy’ Warning After Sparking Bitcoin Price Panic
Tesla billionaire Elon Musk, who could be about to put "dogecoin in the Treasury," sparked bitcoin price panic this week when Tesla suddenly moved its bitcoin.
The bitcoin price, which soared toward its all-time high of around $70,000 per bitcoin in recent weeks thanks to BlackRock and China, has stalled after Tesla's $750 million worth of bitcoin moved to new addresses following two years of dormancy, sparking speculation Tesla may have sold off its remaining bitcoin.
Now, as billionaire investor Stanley Druckenmiller issues a serious Federal Reserve warning, Elon Musk has repeated a warning that the U.S. is hurtling toward the brink of "bankruptcy."
ForbesA Fed ‘Nightmare’ Is Predicted To Spark A Bitcoin Price ‘Tipping Point’By Billy Bambrough
Tesla billionaire Elon Musk has repeatedly warned the U.S. is headed for "bankruptcy"—while the ... [+]
"Excess government spending is driving America to bankruptcy," Musk postedto X, the social media platform he bought and rebranded from Twitter.
Musk's post quoted an anonymous finance account that had said "$500 billion was added to the national debt in just the last 3 weeks," adding: "The government is out of control."
Meanwhile, speaking during a town hall meeting in Folsom, Pennsylvania, Musk warned inflation could again spiral out of control as a result of "crazy" government spending.
"The Federal government is spending America into bankruptcy ... and that's what really leads to inflation ... when the government spends more than it brings in," Musk said, calling it a "pernicious" tax.
"We have to radically reduce the amount of government spending so we don't rack up a government debt that's impossible to repay and we don't drive the country to bankruptcy," Musk said.
Last month, Musk met with El Salvador's bitcoin-backing president Nayib Bukele, who made history when he adopted bitcoin as legal tender in El Salvador in 2021, with Bukele predicting the U.S.'s days could be numbered.
U.S. national debt has skyrocketed in recent years, crossing the $34 trillion mark at the beginning of 2024, largely due to Covid and lockdown stimulus measures that sent inflation spiraling out of control and forced the Federal Reserve to hike interest rates at a historical clip.
Earlier this year, Bank of America analysts warned the U.S. debt load is about to ramp up to add $1 trillion every 100 days—potentially fueling a bitcoin price surge—and could reach $36 trillion by the end of 2024.
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Forbes‘Digitizing The Dollar’—BlackRock CEO Reveals His Radical Plan For AI-Powered Crypto That’s Predicted To Blow Up The Price Of Bitcoin And EthereumBy Billy Bambrough
The bitcoin price has returned to its all-time high this year, surging as the Federal Reserve gears ... [+]
Earlier this month, JPMorgan analysts predicted a so-called "debasement trade" could fuel a bitcoin price boom going into the U.S. election.
Gold and bitcoin could be boosted by "persistently high government deficits across major economies, to waning confidence in fiat currencies in certain emerging markets, and to a broader diversification away from the dollar," according to the analysts who said a Trump election win would likely reinforce the debasement trade.
"Rising geopolitical tensions and the coming U.S. election are likely to reinforce what some investors call the 'debasement trade' thus favoring both gold and bitcoin," JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note to clients seen by Marketwatch.
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